MB-920 Describe Dynamics 365 Finance Practice Question
A company is implementing Dynamics 365 Finance and needs to support multiple legal entities with different fiscal calendars. Which feature should be used to manage this requirement?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Individual fiscal calendars assigned to each legal entity.
Dynamics 365 Finance allows each legal entity to have its own fiscal calendar, enabling support for different fiscal years and period configurations across entities. Option A is incorrect because fiscal year templates define standard period patterns but are applied within a calendar, not directly to entities. Option B is incorrect because shared fiscal calendars would enforce the same fiscal year across entities, conflicting with the requirement for different calendars. Option C is incorrect because ledger period configurations determine period statuses (e.g., open/close) within a calendar, not the calendar itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Fiscal year templates applied to all entities.
Why it's wrong here
Fiscal year templates are for standardizing, not customizing per entity.
- ✗
Shared fiscal calendars across all legal entities.
Why it's wrong here
Shared fiscal calendars would not support different calendars per legal entity.
- ✗
Ledger period configurations in the general ledger.
Why it's wrong here
Ledger periods are part of the calendar, not the management feature.
- ✓
Individual fiscal calendars assigned to each legal entity.
Why this is correct
Each legal entity can have its own fiscal calendar in Dynamics 365 Finance.
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